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SUPREME COURT OF INDIA
PAMIDIGHANTAM SRI NARASIMHA, MANOJ MISRA, JJ.
Delhi Pollution Control Committee – Appellant
Versus
Lodhi Property Co. Ltd. – Respondent
Civil Appeal Nos. 757-760 of 2013, Civil Appeal Nos. 1977-2011 of 2013
Decided On : 04-08-2025
| Table of Content |
|---|
| 1. introduction to the case and background. (Para 1 , 3) |
| 2. application of pollution control laws. (Para 2) |
| 3. single judge’s unfavorable ruling on penalties. (Para 4) |
| 4. division bench upholds single judge's decision. (Para 5) |
| 5. arguments from both parties on regulatory powers. (Para 6 , 7) |
| 6. core question regarding powers of regulatory boards. (Para 8 , 9 , 10) |
| 7. distinction between restitution and punitive action. (Para 17 , 18 , 29) |
| 8. distinction between punitive measures and compensatory actions. (Para 20 , 27) |
| 9. court's conclusions regarding regulatory powers. (Para 28 , 30 , 37 , 38 , 39) |
JUDGMENT :
Contents | |
(1) | Introduction |
(2) | Facts |
(3) | Single Judge’s Judgment and Orders |
(4) | Impugned Order of the Division Bench |
(5) | Submissions |
(6) | Issue |
(7) | Existing Legal Regime for Pollution Control in India |
(8) | Insertion of Sections 33A & 31A in Water and Air Acts |
(9) | Interpretation of and for Environmental Institutions |
(10) | Duty to Restitute v. Power to Punish and Penalise |
(11) | Principles |
(A) Board’s Responsibility to Choose Appropriate Course of Action | |
(B) Powers Must Be Guided by Transparency and Non-Arbitrariness | |
(1) Introduction
1. The Delhi Pollution Control Committee (DPCC)1 [DPCC is a regulatory body in the National Capital Territory of Delhi, established as a ‘State Board’. These Boards are constituted under section 4 of the Water Act and under section 4 or section 5 of the Air Act, and exercise powers granted under section 33A of the Water Act and section 31A of the Air Act. Our interpretation of section 33A and 31A herein will apply to any such body established under said Acts] is in appeal against the judgment of the Division Bench of the High Court holding that it is not empowered to levy compensatory damages in exercise of powers under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974 and Section 31A of the Air (Prevention and Control of Pollution) Act, 19812 [Hereinafter referred to as the Water Act and Air Act respectively] on the ground that such an action amounts to imposition of penalty provided for in Chapters VII and VI of the respective Acts, and as such, procedure contemplated thereunder will be the only method for imposing and collecting compensatory damage.
2. Having considered the principles that govern Indian environmental laws, we have held that the environmental regulators, the Pollution Control Boards exercising powers under the Water and Air Acts, can impose and collect restitutionary or compensatory damages in the form of fixed sum of monies or require furnishing of bank guarantees as an ex-ante measure to prevent potential environmental damage. These powers are incidental and ancillary to the empowerment under Sections 33A and 31A of the Water and Air Acts. At the same time, we have directed that the powers must be exercised as per procedure laid down by subordinate legislation incorporating necessary principles of natural justice, transparency and certainty.
(2) Facts
3. It is the case of the Delhi Pollution Control Committee that pursuant to the directions of the Ministry of Environment, Forest and Climate Change (MoEFCC) to take appropriate action against certain entities operating in violation of the environmental norms, show cause notices were issued for violation of Section 25 of the Water Act and Sections 21 and 22 of the Air Act. These entities were either residential complexes, commercial complexes or shopping malls. The show cause notices were issued on the ground that they proceeded with construction and in fact, were operating without obtaining the mandatory “consent to establish” and “consent to operate” under Section 25 of the Water Act and Section 21 of the Air Act. The show cause notices were challenged by way of 38 writ petitions before the Delhi High Court. The challenge culminated in the judgment of a single judge dated 30.09.2010 in the case of Splendor Landbase Ltd. vs. DPCC , 2012 (195) DLT 177. The learned single judge considered the question as to whether a State Board
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